ISLAMABAD – The Federal Board of Revenue (FBR) has laid out new procedures for foreign petroleum suppliers importing crude oil and petroleum products in their name via custom-bonded warehouses.
The guidelines titled ‘Import, Domestic Sale and Re-export of Petroleum Products on Foreign Supplier’s Account’ were issued under the Customs Bonded Facilities Rules, 2024 on Wednesday.
As per federal cabinet approval, the new procedures will apply to foreign oil companies importing crude and petroleum products through approved custom-bonded storage facilities.
The import, domestic sale and re-export will be governed by Oil and Gas Regulatory Authority (OGRA) and State Bank of Pakistan (SBP) policy directives, Import Policy Order 2022 and Export Policy Order 2022.
Foreign suppliers can either operate through a Pakistani registered subsidiary or set up their own registered company. This will enable them to maintain inventory of bulk crude oil and petroleum products in bonded warehouses across Pakistan for sale to local buyers or export without bringing in foreign exchange.
FBR stated that laid out procedures must be followed by the consignee when importing, selling domestically and re-exporting the petroleum products.
The foreign supplier with its own registered entity in Pakistan is referred to as the ‘consignee’. The foreign supplier should either have a storage license by OGRA or a subsidiary company registered with FBR as importer/exporter with a local bank account.
The consignee can supply bonded petroleum to local buyers with OGRA’s prior online approval per applicable laws. Re-export will also be allowed under existing export regulations.